annual financial report 28 february 2018 · australian wildlife conservancy. 3 . directors’...

Australian Wildlife Consevancy | p +61 8 9380 9633 | [email protected] | www.australianwildlife.org

Annual Financial Report28 February 2018ACN 068 572 556

Australian Wildlife Conservancy

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Contents Page

Directors’ report ......................................................................................................................................................................................3 1. Directors .........................................................................................................................................................................................3 2. Company Secretary ........................................................................................................................................................................5 3. Directors’ meetings ........................................................................................................................................................................5 4. Principal activities ..........................................................................................................................................................................5 5. Operating and financial review ......................................................................................................................................................6 6. Dividends ........................................................................................................................................................................................6 7. Events subsequent to reporting date .............................................................................................................................................6 8. Likely developments .......................................................................................................................................................................7 9. Environmental regulation ..............................................................................................................................................................7 10. Indemnification and insurance of officers and auditors.................................................................................................................7 11. Non-audit services..........................................................................................................................................................................7

12. Lead auditor’s independence declaration ......................................................................................................................................7 Statement of profit or loss and other comprehensive income .......................................................................................... 9 Statements of changes in equity ...................................................................................................................................... 10 Statement of financial position ........................................................................................................................................ 11 Statement of cash flows ........................................................................................................................................................................12 Guide to notes to the financial statements ...................................................................................................................... 13 1. Reporting entity ...........................................................................................................................................................................14 2. Basis of preparation .....................................................................................................................................................................14 3. Significant accounting policies .....................................................................................................................................................14 4. Determination of fair values ........................................................................................................................................................19 5. Revenue .......................................................................................................................................................................................19 6. Personnel expenses ......................................................................................................................................................................19 7. Related parties .............................................................................................................................................................................19 8. Finance income and expense .......................................................................................................................................................20 9. Cash and cash equivalents ...........................................................................................................................................................20 10. Other financial assets ...................................................................................................................................................................20 11. Trade and other receivables .........................................................................................................................................................21 12. Assets held for sale.......................................................................................................................................................................21 13. Other investments .......................................................................................................................................................................21 14. Property, plant and equipment ....................................................................................................................................................22 15. Trade and other payables ............................................................................................................................................................22 16. Employee benefits ........................................................................................................................................................................23 17. Capital and reserves .....................................................................................................................................................................23 18. Reconciliation of cash flows from operating activities .................................................................................................................24 19. Commitments for expenditure .....................................................................................................................................................24 20. Contingencies ...............................................................................................................................................................................25 21. Economic dependency .................................................................................................................................................................25 22. Subsequent events .......................................................................................................................................................................25 23. Auditors’ remuneration ................................................................................................................................................................25 Directors’ declaration ....................................................................................................................................................... 26 Independent audit report to the members of Australian Wildlife Conservancy .............................................................. 27 Declaration under the Charitable Fundraising Act 1991 (NSW) ....................................................................................... 30


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Directors’ report For the year ended 28 February 2018

The directors present their report together with the financial report of Australian Wildlife Conservancy (the Company or AWC) for the financial year ended 28 February 2018 and the independent audit report on the above reports.

1. Directors The directors of the Company at any time during or since the end of the financial year are:

Name Age Experience, qualifications and other directorships

Mr Graeme Morgan Chairperson Non-Executive Director

68 Director since 2003. With a background in finance, Graeme was co-founder and Managing Director of Sealcorp Holdings Ltd (Asgard) until it’s sale to St George Bank. He is a director of several private companies and the founder of Wind Over Water, a family Foundation supporting conservation, medical research, the arts and social programmes. His objective is to continue the development of AWC as a leading contributor to the effective conservation of Australia’s fauna and habitats and to reversing the decline of our threatened species. Graeme is a member of the Board Executive, Remuneration and Audit Committees and a Fellow of the Australian Institute of Company Directors.

Mr Ross Ledger Non-Executive Director

80 Director since 1995. Ross Ledger is a Chartered Accountant in Practice. He is a Fellow of the Australian Institute of Company Directors, a director of Perron Group Ltd and a number of private companies. He has had over fifty years experience in accounting and business and was a partner of Hendry Rae and Court for 25 years. Ross is a trustee of the Australian Wildlife Conservancy Fund, the Stan Perron Charitable Trust and Spinifex Trust.

Professor Timothy Flannery Non-Executive Director

62 2007 Australian of the Year, Professor Tim Flannery has been a director since 1999. He is one of the world's leading environmental thinkers and writers. Tim is a founding member of the Wentworth Group of Concerned Scientists, was Chairman of the Copenhagen Climate Council from 2007-2010 and is on the Board of the Sustainability Advisory Board of Tata Power. From 1999 to 2006, he was director of the South Australian Museum, and is now professor with MISI at Melbourne University. He is one of Australia's leading biodiversity scientists and a recognised authority on climate change. Tim was Chief Commissioner for Australia's climate commission from 2011-2013 and has since been Chief Councillor at the Climate Council of Australia.

Mrs Lea Ferris Non-Executive Director

67 Director since 2005. Lea Ferris is a sculptor, with an urban planning background. She also teaches yoga. Lea is a director of Riverside Holdings Pty. Ltd. and of a family foundation. She has a range of skills relevant to the development of AWC's business and community networks.

Mr Ross Grant Non-Executive Director

70 Director since 2005. Ross Grant is Chairman of Grant Samuel Group Pty Limited, an independent investment banking firm which he established in 1988. Ross was previously an executive director of Macquarie Bank Limited having joined Hill Samuel Australia Limited (the predecessor of Macquarie Bank Limited) in 1975. Ross holds degrees in Mathematics (B.Sc (Hons) – Otago University), Economics (M.Com – Canterbury University) and Business Administration (MBA – University of NSW). Ross is a director of The Centre for Independent Studies and NSW Waratahs Limited.


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Mr Andrew Clifford Non-Executive Director

51 Director since 2010. Andrew Clifford, BCom (Hons) (UNSW), is a co-founder, director and Chief Investment Officer of Platinum Asset Management. Prior to Platinum Asset Management, Andrew was a Vice President at Bankers Trust Australia Limited.

Mrs Michelle Belgiorno – Nettis Non-Executive Director

59 Director since 2013. Michelle Belgiorno - Nettis is an exhibiting artist, a director of several private companies, as well as a Trustee of the Sir William Dobell Art Foundation. She possesses a Bachelor of Arts (Honours), a Master of Commerce and a BA in Fine Arts. Michelle has extensive experience in the philanthropic sector in Australia, particularly in arts and education, and has a background in corporate communications. She has had a lifelong love of our native wildlife and is passionate about preserving it for future generations.

Mrs Kristy Hinze-Clark Non-Executive Director

38 Director since 2013. Kristy has had a long and distinguished career as a model and in the fashion industry both in Australia and internationally. She is also a businesswoman, collaborating with brands such as Sportscraft on a range of products. Kristy is a passionate conservationist. She has been an AWC patron and ambassador for several years.

Mrs Sophie Chamberlain Non-Executive Director

49 Director since 2014. Sophie Chamberlain has a BA(Hons) in Modern Languages and Information Systems from UWE in the UK and worked in the IT industry in both the UK and Australia. She is one of the founders of Impact100 WA, a collective giving group with over one hundred members making high impact grants to local not-for-profits. Sophie is also a director of Spinifex Trust, a foundation which supports conservation, the arts and youth programs.

Mr Mark Robertson OAM Non-Executive Director

62 Director since 2014. Mark Robertson OAM runs a family business incorporating property and hospitality interests. Mark is both director and Deputy Chair of HOSTPLUS and an Advisory Board Member of global institutional investment manager, IFM Investors. Mark is a fellow of the Australian Institute of Company Directors and the Australian Institute of Managers and Leaders.

Mr Malcolm McCusker AC, CVO, QC Non-Executive Director

79 Director since 2015. Malcolm McCusker AC, CVO, QC has practised law since 1961 and as Queens Counsel since 1982. He was Chairman of Legal Aid Commission of WA 1983-2011; Special Inspector investigating Rothwells Bank collapse, 1989-90; Inaugural Chairman Advisory Board of the Constitutional Centre of WA since 1997; Inaugural Parliamentary Inspector, Corruption and Crime Commission (2004 -2009); Awarded AO and WA Citizen of the Year (Professions) 2005; WA Citizen of the Year (Community Service) and Western Australia's Australian of the Year (2010); Governor of WA (2011 – 2014); awarded AC in 2012; and Chairman of the McCusker Charitable Foundation. Malcolm has a strong belief in the need to conserve Australian native wildlife, and to eradicate feral predators.

Mr Atticus Fleming Executive Director

48 Director since 2015. Atticus Fleming is the inaugural Chief Executive of AWC. He previously worked as a policy advisor to a Federal Minister for the Environment; as a constitutional lawyer with the Federal Attorney-General's Department; and as a corporate lawyer with Mallesons Stephen Jaques in Sydney. Atticus was one of four WA finalists in the 2014 Australian of the Year awards; in 2017 was named by Australian Geographic as one of 30 people who have had the greatest influence on conservation of Australia’s wildlife over the last 30 years; and in 2018 received an honorary doctorate from the University of Canberra.


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Mr Dennis Richardson Non-Executive Director

70 Director since 2018. Dennis enjoyed a 48-year career in the Australian Public Service, including as Secretary of the Department of Defence, Secretary of the Department of Foreign Affairs and Trade, Director General of ASIO, Chief of Staff to the Prime Minister and Ambassador to the United States. He currently serves on a number of boards, including those of Linfox, the National Capital Authority and his beloved Canberra Raiders. Dennis is also Patron of the RSPCA in the ACT.

2. Company Secretary Mr André C van Boheemen, BCom, CA was appointed to the position of Company Secretary in March 2010. André holds a Bachelor of Commerce from Curtin University (Accounting and Taxation) and is qualified as a Chartered Accountant. Andre’s 20 years of professional experience spans accounting, taxation and other finance positions in public practice, commerce and the not for profit sector including senior finance roles at Microsoft and the BBC (UK).

3. Directors’ meetings The number of directors’ meetings and number of meetings attended by each of the directors of the Company during the financial year are:

Director

Board meetings

Meetings attended

Meetings held

Mr G Morgan 3 4 Mr R Ledger 4 4 Prof T Flannery 3 4 Mrs L Ferris 4 4 Mr R Grant 4 4 Mr A Clifford 2 4 Mrs M Belgiorno-Nettis 4 4 Mrs K Hinze-Clark 0 4 Mrs S Chamberlain 4 4 Mr M Robertson 2 4 Mr M McCusker 2 4 Mr A Fleming 4 4 Mr D Richardson 1 1

4. Principal activities The principal activities of the Company during the course of the financial year were directed toward the conservation of Australia’s wildlife, particularly threatened species and ecosystems. These activities included: • the establishment of wildlife sanctuaries including through the acquisition of land and the development of

partnerships with other landholders; • the implementation of on-ground conservation programs including translocations of threatened wildlife,

feral animal control, weed control and fire management; • the conduct of scientific research addressing the key threats to Australia’s wildlife; and • the carrying out of public education and visitor programs designed to enhance awareness of conservation

issues.

There were no significant changes in the nature of the activities of the Company during the period.


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5. Operating and financial review Overview of the company

The overall operating surplus for the year was $7,142,309. The surplus was used to improve infrastructure for new and existing projects and to strengthen working capital to provide for anticipated expenditure in 2018-19 and beyond. The surplus represents an increase of $2,103,331 compared to 2016-17. Our continued, disciplined approach to controlling expenditure and ensuring it is overwhelmingly focused on field operations while keeping administrative and fundraising costs at a minimum, contributed to the strong result. The Company's operations during the year enabled the organisation to successfully carry out its principal activities. As a charitable organisation, AWC development programs have raised sufficient funds for the execution of these activities.

Review of principal activities

Key outcomes from AWC's operations in 2017-18 included: • As at 28 February 2018, AWC owned and/or managed for conservation 27 properties covering 4.63 million

hectares (11.44 million acres). • Substantial on-ground programs were delivered at AWC sanctuaries around Australia. For example:

- From our base at Mornington, AWC implemented fire management (EcoFire) across more than 3 million hectares of the Kimberley in collaboration with a range of other landholders. Together with extensive fire management across AWC’s other properties, especially in northern Australia, AWC delivered the largest fire management program of any non-government organisation in Australia.

- AWC continues to manage more fox and cat-free land on mainland Australia than any other organisation.

- AWC implements one of the nation’s largest threatened mammal translocation/reintroduction programs across our sanctuaries including Scotia, Karakamia, Yookamurra, Faure Island, Paruna and Mt Gibson. In total, AWC has conducted more than 100 mammal translocations.

- A range of other programs were carried out across AWC sanctuaries including weed control and the establishment and maintenance of sanctuary infrastructure.

• A range of strategic research programs were carried out by AWC. These research programs, involving collaboration with a range of partners, address key issues affecting biodiversity in Australia including: - The ecological role of small mammals. - The decline of small mammals in northern Australia. - The impact of feral cats and the relationship between foxes and cats. - The effect of different fire regimes. - The impact of grazing. - The ecology of threatened species including Sharman’s Rock-wallaby, the Numbat, the Bilby and the

Purple-crowned Fairy-wren. • Environmental education and visitor programs were carried out at several sanctuaries including

Mornington, Karakamia, Paruna, Yookamurra (which hosted a series of school visits), Charnley River-Artesian Range and Bowra.

Significant changes in the state of affairs In the opinion of the directors there were no significant changes in the state of affairs of the Company that occurred during the financial year under review.

6. Dividends The constitution of the Company does not permit the payment of dividends.

7. Events subsequent to reporting date There has not arisen in the interval between the end of the financial period and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company, in future financial years.


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8. Likely developments

The Company will continue to pursue its principal activities identified above. In the opinion of the directors, further information about likely developments in the operations of the Company and the expected results of those operations in future financial years has not been included in this report because disclosure of the information would be likely to result in unreasonable prejudice to the Company.

9. Environmental regulation The Company’s operations are subject to significant environmental regulation under both Commonwealth and State legislation. Based upon the results of inquiries made, the directors are not aware of any significant breaches during the period covered by this report.

10. Indemnification and insurance of officers and auditors Indemnification

Since the end of the previous financial year, the Company has not indemnified or made a relevant agreement for indemnifying against a liability any person who is or has been an officer or auditor of the Company.

Insurance Premiums The directors have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the directors’ and officers’ liability and legal expenses’ insurance contracts, as such disclosure is prohibited under the terms of the contract.

11. Non-audit services During the year KPMG, the Company’s auditor, has performed no other services in addition to the audit and review of financial statements.

12. Lead auditor’s independence declaration The Lead auditor’s independence declaration is set out on page 8 and forms part of the directors’ report for financial year ended 28 February 2018.

This report is made with a resolution of the directors:

Graeme Morgan Mark Robertson Director Director Dated at Perth this 22nd day of May 2018.


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Lead auditor’s independence declaration


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Statement of profit or loss and other comprehensive income For the year ended 28 February 2018

This statement of profit or loss and other comprehensive income is to be read in conjunction with the notes accompanying the financial statements.

Note 2018 2017$ $

REVENUEDonations and grants 16,686,613 13,262,216Sanctuary income 4,078,518 4,239,840Other revenue 4,583,063 2,673,030Total revenue 5 25,348,194 20,175,086

EXPENDITUREAdministration and developmentAdministration expenses 1,390,517 1,466,176Development (fundraising) expenses 1,268,685 1,168,184Total administration and development expenses 2,659,202 2,634,360

Conservation programsConservation assessment and policy 1,282,296 1,359,841Conservation programs (sanctuary management) Southwest region (Faure Is land, Karakamia, Mt Gibson,

Paruna)2,317,082 1,882,851

Kimberley (Charnley River-Artes ian Range, Dambimangari , Marion Downs, Mornington, Tableland, Yampi)

4,537,689 3,915,717

Queensland & Northern Territory (Brooklyn, Curramore, Mt Zero & Tarava le, Newhaven, Piccaninny Pla ins , Bowra, Pungal ina & Seven Emu, Wongalara)

5,642,071 4,236,302

Southeast region (Buckaringa, Dakalanta , Ka lamurina, Mal lee Cl i ffs , The Pi l l iga , Scotia , Yookamurra)

3,905,451 2,763,921

Total conservation program expenses 17,684,589 14,158,632

Total operating expenditure 20,343,791 16,792,992

Results from operating activities 5,004,403 3,382,094

Financial income 8 2,176,189 1,691,116Financial expenses 8 (38,283) (34,232)Net finance income 2,137,906 1,656,884

Total comprehensive income 7,142,309 5,038,978


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Statements of changes in equity For the year ended 28 February 2018

This statement of changes in equity is to be read in conjunction with the notes accompanying the financial statements.

Retained earnings Total equity

2018Balance at 1 March 2017 89,628,552 89,628,552 Total comprehensive income for the periodSurplus for the period 7,142,309 7,142,309 Total comprehensive income for the period 7,142,309 7,142,309 Balance at 28 February 2018 96,770,861 96,770,861

2017Balance at 1 March 2016 84,589,574 84,589,574 Total comprehensive income for the periodSurplus for the period 5,038,978 5,038,978 Total comprehensive income for the period 5,038,978 5,038,978 Balance at 28 February 2017 89,628,552 89,628,552


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Statement of financial position As at 28 February 2018

This statement of financial position is to be read in conjunction with the notes accompanying the financial statements.

Note 2018 2017$ $

ASSETSCurrent assets

Cash and cash equivalents 9 8,820,402 8,454,434Other financial assets 10 20,729,484 15,679,020Trade and other receivables 11 1,556,495 2,776,415Assets held for sale 12 - 3,033,110Total current assets 31,106,381 29,942,979

Non-current assetsOther investments 13 9,662,216 8,289,813Property, plant and equipment 14 58,867,990 53,348,579Total non-current assets 68,530,206 61,638,392

TOTAL ASSETS 99,636,587 91,581,371

LIABILITIESCurrent liabilities

Trade and other payables 15 1,482,065 804,200Employee benefits 16 925,591 797,957Total current liabilities 2,407,656 1,602,157

Non-current liabilitiesEmployee benefits 16 458,070 350,662Total non-current liabilities 458,070 350,662

TOTAL LIABILITIES 2,865,726 1,952,819

NET ASSETS 96,770,861 89,628,552

EQUITYRetained earnings 17 96,770,861 89,628,552

TOTAL EQUITY 96,770,861 89,628,552


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Statement of cash flows For the year ended 28 February 2018

This statement of cash flows is to be read in conjunction with the notes accompanying the financial statements.

Note 2018 2017$ $

Cash flows from operating activitiesCash receipts from customers 8,890,166 5,025,086Cash receipts from donations and grants 16,136,613 13,262,216Cash paid to suppliers and employees (17,612,840) (15,059,076)Cash generated from operations 7,413,939 3,228,226Interest and bank fees paid (38,283) (34,232)Net cash from operating activities 18 7,375,656 3,193,994

Cash flows from investing activitiesProceeds from sale of property, plant and equipment 89,620 61,136Proceeds from sale of other investments 4,000,000 - (Investment) / Disinvestment in other financial assets (5,050,464) 1,266,772Interest received 772,841 720,540Acquisition of property, plant and equipment (6,821,685) (4,789,244)Acquisition of other investments - (963,000)Net cash used in investing activities (7,009,688) (3,703,796)

Net increase / (decrease) in cash and cash equivalents 365,968 (509,802)Cash and cash equivalents at start of period 8,454,434 8,964,236Cash and cash equivalents at 28 February 9 8,820,402 8,454,434

Australian Wildlife Conservancy Notes to the Financial Statements

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Guide to notes to the financial statements

1. Reporting entity ...........................................................................................................................................................................14 2. Basis of preparation .....................................................................................................................................................................14

(a) Statement of compliance ....................................................................................................................................................14 (b) Basis of measurement ........................................................................................................................................................14 (c) Functional currency ............................................................................................................................................................14 (d) Use of estimates and judgements ......................................................................................................................................14

3. Significant accounting policies .....................................................................................................................................................14 (a) Financial instruments ..........................................................................................................................................................15 (b) Assets held for sale .............................................................................................................................................................15 (c) Property, plant and equipment ..........................................................................................................................................15 (d) Biological assets ..................................................................................................................................................................16 (e) Leased assets ......................................................................................................................................................................16 (f) Impairment .........................................................................................................................................................................17 (g) Employee benefits ..............................................................................................................................................................17 (h) Revenue ..............................................................................................................................................................................18 (i) Finance income and expenses ............................................................................................................................................18 (j) Income tax ..........................................................................................................................................................................18 (k) Goods and services tax .....................................................................................................................................................188

(l) New standards and interpretations not yet adopted .........................................................................................................19 (m) Change in accounting policies .............................................................................................................................................19

4. Determination of fair values ........................................................................................................................................................19 5. Revenue .......................................................................................................................................................................................19 6. Personnel expenses ......................................................................................................................................................................19 7. Related parties .............................................................................................................................................................................19 8. Finance income and expense .......................................................................................................................................................20 9. Cash and cash equivalents ...........................................................................................................................................................20 10. Other financial assets ...................................................................................................................................................................20 11. Trade and other receivables .........................................................................................................................................................21 12. Assets held for sale.......................................................................................................................................................................21 13. Other investments .......................................................................................................................................................................21 14. Property, plant and equipment ....................................................................................................................................................22 15. Trade and other payables ............................................................................................................................................................22 16. Employee benefits ........................................................................................................................................................................23 17. Capital and reserves .....................................................................................................................................................................23 18. Reconciliation of cash flows from operating activities .................................................................................................................24 19. Commitments for expenditure .....................................................................................................................................................24 20. Contingencies ...............................................................................................................................................................................25 21. Economic dependency .................................................................................................................................................................25 22. Subsequent events .......................................................................................................................................................................25 23. Auditors’ remuneration ................................................................................................................................................................25


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1. Reporting entity Australian Wildlife Conservancy (the ‘Company’) is a not for profit entity under the Australian Charities and Not-for-profit Commission Act 2012 and is a company limited by guarantee and domiciled in Australia. The registered office is at Suite 5, 280 Hay Street, Subiaco, Western Australia. These financial statements of the Company are as at, and for the year ending 28 February 2018. The Company’s primary purpose is the conservation of Australia’s wildlife, particularly threatened species and ecosystems.

2. Basis of preparation (a) Statement of compliance

In the opinion of the Directors, the Company is not publicly accountable as that term is defined for the purposes of the Australian Accounting Standards (AASB 1053). For example, the company does not issue equity or debt instruments that are traded in a public market. However, the company is accountable, in the ordinary sense of that term, to its donors and other stakeholders for the performance of its conservation activities. The financial statements are Tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements adopted by the Australian Accounting Standards Board and the Australian Charities and Not-for-profits Commission Act 2012. These financial statements comply with Australian Accounting Standards – Reduced Disclosure Requirements. The financial statements were approved by the Directors on the 22nd of May 2018.

(b) Basis of measurement The financial statements have been prepared on the historical cost basis, except for the following:

• financial instruments are measure at fair value through profit or loss and; • assets held for sale are measured at the lower of their carrying amount and at fair value less costs to

sell. The methods used to measure fair values are discussed further in note 4.

(c) Functional currency These financial statements are presented in Australian dollars, which is the functional currency of the Company.

(d) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in the following notes:

• Note 4 – Determination of fair values • Note 12 – Assets held for sale • Note 14 – Property, plant and equipment • Note 20 – Contingencies

3. Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements. Certain comparative amounts may have been reclassified to conform to the current year’s presentation.


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(a) Financial instruments Non-derivative financial instruments Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit or loss, any directly attributable transaction costs, except as described below. Subsequent to initial recognition non-derivative financial instruments are measured as described below. A financial instrument is recognised if the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Company’s contractual rights to the cash flows from the financial assets expire or if the Company transfers the financial asset to another party without retaining control or substantially all risks and rewards of the asset. Regular purchases and sales of financial assets are accounted for at trade date (i.e.: the date that the Company commits itself to purchase or sell the asset). Financial liabilities are derecognised if the Company’s obligations specified in the contract expire or are discharged or cancelled. Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from acquisition date that are subject to insignificant risk of changes in fair value and are used by the company in the management of its short term commitments. Call or term deposits with a longer maturity at acquisition are classified as Other financial assets. Bank overdrafts that are repayable on demand and form an integral part of the Company’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. Accounting for finance income and expense is discussed in note 3(i). Investments at fair value through profit or loss An instrument is classified as at fair value through profit or loss if it is held for trading or is designated as such upon initial recognition. Financial instruments are designated at fair value through profit or loss if the Company manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Company’s documented risk management or investment strategy. Upon initial recognition, attributable transaction costs are recognised in profit or loss when incurred. Financial instruments at fair value through profit or loss are measured at fair value, and changes therein are recognised in profit or loss. Loans and receivables These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method. Non-derivative financial liabilities – measurement Non-derivative financial liabilities are initially recognised at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest rate method.

(b) Assets held for sale Non-current assets are classified as held-for-sale if it is highly probably that they will be recovered primarily through sale rather than through continuing use. Such assets are generally measured at the lower of their carrying amount and fair value less costs to sell. Impairment losses on initial classification as held-for-sale and subsequent gains and losses on remeasurement are recognised in the profit or loss.

(c) Property, plant and equipment Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.


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Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour; any other costs directly attributable to bringing the asset to a working condition for its intended use; and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within “other income” in profit or loss. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. Leasehold land Leasehold land represents payments made by the Company to acquire interests in pastoral leases. The Company considers its pastoral leases rights to be indefinite unless otherwise noted. Leasehold land is recorded at cost and is not depreciated unless the life of the right to the pastoral lease is considered to be fixed. In this case, the leasehold land is depreciated over the term of the lease on a straight-line basis. Depreciation Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives, unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Land is not depreciated. Depreciation methods, useful lives and residual values are reassessed at the reporting date. The estimated useful lives for the current and comparative periods are as follows: • Freehold Improvements 7 to 33 years • Leasehold Improvements 5 to 33 years • Plant and Equipment 3 to 20 years

(d) Biological assets

Livestock held for sale Biological assets are valued at fair value less costs to sell, with any change therein recognised in profit or loss. AWC has certain obligations under pastoral lease legislation in Western Australia, Queensland, New South Wales and Northern Territory. Except for the commercial herd of cattle at Charnley River Station, the costs of livestock kept on an Australian Wildlife Conservancy property to ensure compliance with such legislation is expensed as incurred. The reason for this policy is that such livestock is only held to ensure compliance with the pastoral lease legislation and so is regarded as akin to maintenance.

(e) Leased assets Leases in terms of which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Other leases except for pastoral leases are operating leases and are not recognised on the Company’s Statement of Financial Position. Annual payments incurred to maintain an interest in a pastoral lease is expensed as incurred.


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(f) Impairment The carrying amounts of the Company’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. Financial assets A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value. All impairment losses are recognised in profit or loss. Any cumulative loss in respect of an available-for-sale financial asset recognised previously in equity is transferred to profit or loss. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For available-for-sale financial assets that are equity securities, the reversal is recognised directly in equity to the extent of that previous revaluation, with any excess recognised through profit or loss. Non-financial assets The carrying amounts of the Company’s non-financial assets (other than biological assets) are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised as profit or loss. The recoverable amount of an asset is the greater of its value in use and its fair value (less costs to sell). In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

(g) Employee benefits Defined contribution superannuation funds A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution superannuation funds are recognised as an expense in profit or loss when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available. Other long-term employee benefits The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on costs; that benefit is discounted to determine its present value. Remeasurements are recognised in profit or loss in the period in which they arise.


18

Termination benefits Termination benefits are recognised as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to terminate employment before the normal retirement date. Termination benefits for voluntary redundancies are recognised if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. Short-term benefits Short-term employee benefits are expensed as the related service is provided. Liabilities recognised represent present obligations resulting from employees’ services provided to reporting date and are calculated at undiscounted amounts based on remuneration wage and salary rates that the Company expects to pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax. Non-accumulating benefits, such as sick leave or medical care, are expensed based on the net marginal cost to the Company as the benefits are taken by the employees.

(h) Revenue Donations, gifts and government Grants Donations, gifts and government grants are recognised in the Income Statement when the Company obtains control of the contribution or the right to receive it and it is probable that the contribution will flow to the entity and the amount can be measured reliably. Income on donations received ‘in kind’ is recognised at the fair value of the donation. The fair value of donations received ‘in kind’ is established by an independent certified property valuer. Sanctuary income Sanctuary income is revenue originating from sanctuary based activities including education and visitor programs. Sanctuary income is recognised as it accrues. Interest income Interest revenue is recognised as it accrues.

(i) Finance income and expenses Finance income comprises interest income on funds invested, dividend income, gains on the disposal of available-for-sale financial assets and changes in the fair value of financial assets at fair value that are recognised in profit or loss. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Dividend income is recognised on the date that the Company’s right to receive payment is established, which in the case of quoted securities is the ex-dividend date. Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, dividends on preference shares classified as liabilities, foreign currency losses, changes in the fair value of financial assets at fair value through profit or loss and impairment losses recognised on financial assets that are recognised in profit or loss. All borrowing costs are recognised in profit or loss using the effective interest method.

(j) Income tax The Company is exempt from income tax under Section 23(e) of the Income Tax Assessment Act.

(k) Goods and services tax Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.


19

(l) New standards and interpretations not yet adopted The following are a number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 March 2018, and have not been applied in preparing these financial statements.

a) AASB 9 Financial Instruments b) AASB 15 Revenue from Contracts with Customers c) AASB 16 Leases d) AASB 1058 Income for Not-for-Profit Entities

The Company is yet to assess the impact of these standards.

(m) Change in accounting policies The Company has adopted all the new and revised Accounting Standards and Interpretations issued by the AASB that are relevant to the operations and for reporting periods beginning on or before 1 March 2017. These have had no material effect.

4. Determination of fair values A number of the Company’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

(a) Investments in equity securities The fair value of financial assets at fair value through profit or loss is based on quoted market prices at the balance sheet date.

5. Revenue

6. Personnel expenses

7. Related parties (a) Key management personnel compensation

The key management personnel compensation included in ‘personnel expenses (see note 6) was $1,244,005 for the year ended 28 February 2018 (2017: $1,189,914). The Non-Executive Directors of Australian Wildlife Conservancy are not remunerated.

2018 2017

$ $

Donations, gifts and sponsorship 15,290,649 11,199,674 Government grants 1,395,964 2,062,542 Sanctuary income 4,078,518 4,239,840 Other revenue 4,583,063 2,673,030 Total 25,348,194 20,175,086

2018 2017$ $

Salaries & wages 9,289,336 7,819,131 Contributions to defined contribution superannuation funds 866,330 723,838 Increase in l iabil ity for long service leave 107,408 19,736 Increase in l iabil ity for annual leave 119,788 105,726 Workers' compensation insurance and fringe benefits tax 273,083 243,260 Staff recruitment, training and other 224,149 122,817

10,880,094 9,034,508


20

(b) Related parties transactions The Company leases premises for its head office in Subiaco from the trustee for the Martin Copley Will Trust, an entity related to Sophie Chamberlain (Director). All dealings are in the ordinary course of business and on normal commercial terms and conditions through a third-party property manager. During the year ended 28 February 2018, the Company paid $83,160 (2017: $107,828) in rent on this property. There was no amount outstanding as at 28 February 2018 (2017: $nil). There were no other payments to directors. From time to time, directors of the Company or their director-related entities may make donations to the Company (see note 22).

8. Finance income and expense

9. Cash and cash equivalents

As at 28 February 2018 the Company had term deposits invested ranging from 15 to 83 days (remaining) at interest rates between 1.89% and 2.45% (at 28 February 2017 deposits were invested for 6 to 88 days remaining at interest rates between 2.50% and 2.70%.) The Company also held funds in an “At Call” investment account attracting 0.50% interest (2017: 0.60%).

10. Other financial assets

As at 28 February 2018 the Company had Other financial assets consisting of term deposits invested for periods ranging from 120 to 365 days at interest rates between 2.35% and 2.52% (at 28 February 2017 deposits were invested for 101 to 365 days at interest rates between 2.50% and 2.70%.).

2018 2017$ $

Dividends and franking credits 437,461 388,630 Net gains (unrealised) on investments at fair value 965,887 581,946 Interest income 772,841 720,540 Financial income 2,176,189 1,691,116

Interest expense and financial services fees (38,283) (34,232) Financial expenses (38,283) (34,232) Net financing income 2,137,906 1,656,884

2018 2017Current $ $Bank balances 810,267 83,782 Short term deposits 8,010,135 8,370,652 Cash and cash equivalents in statement of cash flows 8,820,402 8,454,434

2018 2017Current $ $Term deposits (held to maturity) 20,729,484 15,679,020

20,729,484 15,679,020


21

11. Trade and other receivables

12. Assets held for sale

13. Other investments

The above investments have been measured based on:

• Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

2018 2017Current $ $Trade receivables 587,475 1,163,581 Other receivables 778,283 1,395,057 Prepayments 190,737 217,777

1,556,495 2,776,415

2018 2017Current $ $Balance at 1 March 3,033,110 - Transfer from biological assets - 3,033,110 Sale of asset (3,033,110) - Balance at 28 February - 3,033,110

2018 2017Non-Current $ $Investments at fair value 9,662,216 8,289,813

9,662,216 8,289,813


22

14. Property, plant and equipment

15. Trade and other payables

FreeholdLand &

Improve-ments

LeaseholdLand &

Improve-ments

Plant&

Equipment

Under Construc-

tion

Total

Cost or deemed costBalance at 1 March 2016 12,969,272 28,230,866 20,432,533 414,705 62,047,376 Acquisitions - - 3,490,993 1,298,251 4,789,244 Disposals - (2,837) (596,846) - (599,683) Transfers - - 376,003 (376,003) - Balance at 28 February 2017 12,969,272 28,228,029 23,702,683 1,336,953 66,236,937

Balance at 1 March 2017 12,969,272 28,228,029 23,702,683 1,336,953 66,236,937 Acquisitions / Donations 550,957 - 4,529,283 2,291,445 7,371,685 Disposals - - (814,251) - (814,251) Transfers - - 1,336,953 (1,336,953) - Balance at 28 February 2018 13,520,229 28,228,029 28,754,668 2,291,445 72,794,371

Depreciation and impairment LossesBalance at 1 March 2016 848,425 1,416,706 9,578,475 - 11,843,606 Depreciation charge 57,129 24,456 1,299,815 - 1,381,400 Amortisation 54,694 - - - 54,694 Disposals - (2,039) (389,303) - (391,342) Balance at 28 February 2017 960,248 1,439,123 10,488,987 - 12,888,358

Balance at 1 March 2017 960,248 1,439,123 10,488,987 - 12,888,358 Depreciation charge 59,985 2,137 1,619,134 - 1,681,256 Amortisation - 54,694 - - 54,694 Disposals - - (697,927) - (697,927) Balance at 28 February 2018 1,020,233 1,495,954 11,410,194 - 13,926,381

Carrying amountsAt 1 March 2016 12,120,847 26,814,160 10,854,058 414,705 50,203,770 At 28 February 2017 12,009,024 26,788,906 13,213,696 1,336,953 53,348,579 At 28 February 2018 12,499,996 26,732,075 17,344,474 2,291,445 58,867,990

2018 2017Current $ $Trade payables 647,971 409,196 Other payables 493,353 109,653 Unearned revenue 340,741 285,351

1,482,065 804,200


23

16. Employee benefits

Defined contribution plans The Company makes superannuation contributions to defined contribution plans. The amount recognised as an expense was $866,330 for the year ended 28 February 2018 (2017: $723,838).

17. Capital and reserves Reconciliation of movement in capital and reserves

Australian Wildlife Conservancy is a not-for-profit, charitable organisation limited by guarantee and hence has no issued share capital. Each of the eleven members has guaranteed an amount of $50.

2018 2017Current $ $Liabil ity for annual Leave 772,562 652,774 Salary 17,910 7,289 Bonus - 25,288 Superannuation contributions 135,119 112,606

925,591 797,957 Non-currentLiabil ity for long-service leave (pro-rata) 458,070 350,662

458,070 350,662

Total employee benefits 1,383,661 1,148,619

AccumulatedFunds

TotalEquity

Balance at 1 March 2016 84,589,574 84,589,574 Total comprehensive Income 5,038,978 5,038,978 Balance at 28 February 2017 89,628,552 89,628,552

Balance at 1 March 2017 89,628,552 89,628,552 Total comprehensive Income 7,142,309 7,142,309 Balance at 28 February 2018 96,770,861 96,770,861


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18. Reconciliation of cash flows from operating activities

19. Commitments for expenditure (a) Operating leases

Leases as lessee At 28 February 2018, the future minimum lease payments under non-cancellable operating lease rentals are payable as follows:

The Company leases office premises, equipment and property at Tableland and Charnley River-Artesian Range under operating leases. During the year ended 28 February 2018 $169,934 (2017: $178,448) was recognised as an expense in the income statement in respect of operating leases.

(b) Other commitments

Other commitments are expenditure to maintain the right to pastoral leases. The pastoral leases typically run for a period of between 10 and 99 years, with an option to renew the lease after that date at which time some terms are renegotiated or altered. Two of AWC’s pastoral leases are perpetual and have no termination date. Commitments beyond 50 years are not included in this disclosure.

2018 2017$ $

Surplus for the period 7,142,309 5,038,978Adjustments for:

Depreciation and amortisation 1,735,950 1,436,094Non cash donations received (550,000) -Change in fair value of financial assets (965,887) (581,946)Interest received (772,841) (720,540)Dividends received (406,516) (360,593)Change in fair value of biological assets - (1,188,900)Value of cattle sold (966,890) 966,890

26,704 147,205

5,242,829 4,737,188

Adjustments for changes in:Trade and other receivables 1,219,920 (1,979,162)Trade and other payables 677,865 317,194Employee benefits 235,042 118,774

Net cash from operating activities 7,375,656 3,193,994

Loss on disposal or sale of property, plant and equipment

Operating profit before changes in working capital and provisions

2018 2017$ $

Less than one year 155,455 75,647 Between one and five years 362,514 227,261 More than five and less than fifty years 1,877,237 1,916,569

2,395,206 2,219,477

2018 2017$ $

Less than one year 95,459 89,822 Between one and five years 465,486 359,290 More than five and less than fifty years 2,545,936 2,632,029

3,106,881 3,081,141


25

20. Contingencies Under the terms of the grant agreements between Department of the Environment & Heritage and the Australian Wildlife Conservancy, the Company must seek to: • Protect the land held at Brooklyn Pastoral Holding for 99 years, with a minimum investment of $750,000 over

5 years from the date of the agreement. • Protect the land held at Scotia Sanctuary, Newhaven, Mornington, Marion Downs, Kalamurina, Wongalara,

Taravale Station, Mt Zero and Pungalina for 99 years under voluntary conservation agreements. The directors are of the opinion that provisions are not required in respect of these matters. The minimum investment at Brooklyn has already been exceeded.

21. Economic dependency Approximately 14% (2017: 16%) of the Company’s donations are from its directors and officers or director-related entities.

22. Subsequent events There has not arisen in the interval between the end of the financial period and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company, in future financial years.

23. Auditors’ remuneration

KPMG undertook the audit of the Emissions Reduction Fund in 2017 on a partial-pro bono basis.

2018 2017$ $

Audit Services - financial statements 33,486 68,835 Audit Services - emissions reduction fund - 58,500

33,486 127,335


26

Directors’ declaration In the opinion of the directors of Australian Wildlife Conservancy (‘the Company’): (a) the Company is not publically accountable as that term is defined for the purposes of the Australian

Accounting Standards (AASB 1053).

(b) the financial statements and notes, set out on pages 9 to 25, are in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including:

(i) giving a true and fair view of the Company’s financial position as at 28 February 2018 and of its performance, for the financial year ended on that date; and

(ii) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profit Commission Regulations 2013.

(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they

become due and payable. Signed in accordance with a resolution of the Directors.

Graeme Morgan Mark Robertson Director Director Dated at Perth this 22nd day of May 2018.


27

Independent audit report to the members of Australian Wildlife Conservancy


28



29



30

Declaration under the Charitable Fundraising Act 1991 (NSW)

I, Ross Ledger, being a Director of Australian Wildlife Conservancy, declare that the company is the holder of an authority under the Charitable Fundraising Act 1991 (NSW), registration number CFN 18200. All net surpluses obtained from fundraising appeals during the year ended 28 February 2018 were applied to conservation services, scientific research, visitor education programs and their administration. I further declare that in my opinion: a) the accounts give a true and fair view of the state of affairs of all the income and expenditure of the

organisation with respect to fundraising appeals; b) the balance sheet gives a true and fair view of the state of affairs with respect to fundraising appeals

conducted by the organisation; c) the provisions of the Act, the regulations under the Act and the conditions attached to the fundraising

authority have been complied with by the organisation; and d) the internal controls exercised by the organisation are appropriate and effective in accounting for all

income received and applied by the organisation from any of its fundraising appeals.

Forms of appeals The forms of fundraising appeals conducted in NSW during the year ended 28 February 2018 were: • organised functions for supporters by invitation only; • applications to philanthropic foundations; • contact with AWC supporters by telephone and in person; and • donations via workplace ‘giving’ programs.

Comparative figures and ratios The following percentages and ratios are provided for comparative purposes:

i. Total costs of fundraising as a percentage (ratio) of gross income from fundraising was 7.6% ($ 1.29m : $ 16.69m).

ii. Net surplus from fundraising as a percentage (ratio) of gross income from fundraising was 92.4% ($ 15.42m : $ 16.69m).

iii. Total cost of nature conservation services (including capital expenditure) as a percentage (ratio) of total expenditure was 89.4% ($ 22.83m : $ 25.52m).

iv. Total cost of nature conservation services (including capital expenditure) as a percentage (ratio) of total income was 82.9% ($ 22.83m : $ 27.52m).

Information on traders

No appeals were conducted using the services of traders.

Graeme Morgan Director

annual financial report 28 february 2018 · australian wildlife conservancy. 3 . directors’...

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